Well, Kevin Rudd did well to initially state that the Federal Government would underwrite any losses suffered in the event of an Australian bank collapsing as a result of the world's financial crisis. Good point for him, thats what a Government is to do when times of hardship happen.
But I totally disagree with the soon announcement that the Federal Government will give one off payments of $2100 to pensioners, $1000 to babies born after 14 October and lump sum payments (the amount escapes me) for low income earners and an increase from the first home buyers grant to $14,000 (up from the existing $7,000) and an astonishing grant of $21,000 to first home "builders" as long as the house is constructed before 30 June 2009.
This totals a massive $10.4 BILLION dollars in hand outs.
And why? Because the "average" Australian is struggling during the current financial crisis....
What a load of rubbish! The reason why the crisis happened in the first place was that people were living on credit and buying homes on 100%+ mortgages and then defaulting on those mortgages causing a glut of 'bad debt' in the market place. It is because of the chronic ability for people to buy things within their means...
And now Rudd is giving people a lump sum which will primarily be used on luxury items and paying off debt so people can use more credit. In addition, do you not think that every house just went up in value by an additional $7,000 and hence mortgages will be that fractionally more expensive?
Why not simply reduce fuel excise so that the average Australian will save $1000 a year on petrol? The surplus remains, the government takes a cut on their income but Australians will have a bit more disposable income to ensure that the economy remains proportionally prosperous.
Instead, Rudd has blown the surplus - which should be used for capital expenditure on infrastructure - on your average Australian gaining a plasma TV.